Exam 5: Selecting Business-Level Strategies

A company introduces a new product in the market.The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors charge.Which of the following disadvantage would the company face because of the strategy it proposes to follow?

A hotel chain offers rooms which are priced higher than what other hotels in the same category offer.The services provided by the hotel are similar in quality when compared to the other firms.This situation makes it impossible for the hotel chain to compete either on the basis of price or on the basis of standout features.This hotel chain is a _____ organization.

Car manufacturers such as Lamborghini compete in the small super car category.These cars offer more than just transportation.They are known for their styling and state of art technology.Which of the following is an advantage for such a company?

A company that manufactures laundry detergent makes use of salespersons for door-to-door selling to directly sell the products to the customers.The company allows customers to make payments for the products within a period of one month.This is an example of a(n):

A company introduces a new product in the market.The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors offer in the market.Which of the statements would hold true for such a strategy?